Credit Rating: How it works and How to improve it discussion area

carlazi

Thanks to the help from this forum and another I managed to get a default removed from my file. Since then I have taken a free trial with experian and noodle to check my history etc. I also did an eligibility check with the system here and thats where my puzzle started.

I have a overdraft and cc with first direct. I have decent salary and debt that is paid off every month. When I do the eligibility search it came back with the bad rating cards. I cannot understand why i would be put in this bracket esp considering my good history with the default taken off.

Has anyone ideas on why?

mardiemare2008

magnace wrote: »

However I obtained my Experian credit report and discovered because I have a low credit limit (and use about 90% of the limit each month) this is a Negative factor in my report!

So much for a credit score building solution!

I did not know this!! I too got myself a high interest capitalone Credit card. I was given a £200 limit, and have been using the full limit for fuel and lunch for the last 15 months and paying it back in full each month. I have been checking my equifax report and my credit rating is still 270 .

I didn't know that using most of the limit could have a negative effect. So I have just phoned Capital one and asked for an increase. They've now increased it to £450. So if I continue to spend the same amount on my card this should effect me positively?

I feel like I've just wasted the last 15 months

franandez

I want to improve my credit rating by getting on the electoral register.

Will my credit rating still improve even if I opt out of the edited electoral roll?

(I.e. does it matter if I'm on the edited electoral roll or not, so long as I am registered as voter? Or will credit rating companies only be able to check me if I'm on the edited roll?)

Thanks in advance!

EMM144

Hi.....I was hoping someone could give me some advice.
We are hoping to apply for a self build mortgage in the next couple of months and everything I have read has warned against applying for anything (e.g. new bank accounts/credit cards) in the few months before applying for a mortgage as there will be a 'footprint' left on your credit file if you are credit checked. My car insurance is due at the end of this month and when I rang to get a quote my broker asked did I consent to a credit check as some insurers now use them to check you haven't got bad debt. I have checked my credit rating in the last few months and am not concerned the insurers will have any issues as it is good but I am worried the mortgage application may suffer in a month or two's time if they see a credit check for insurance. Any help or advice would be appreciated - have told insurers I will phone them back!!!!

fermi

Markh2013 wrote: »

Hi all,

I was wondering if anyone could possibly shed some light on why my Experian credit score is 751 and my Equifax is only 75, yes that's right 75!!! ?

I have been using Experian for the past year to keep an eye on things and build up my credit score but recently also looked at Equifax.

I have 3 late payments from an account last year which I then settled( due to substandard service from a phone network). I have no CCJ or defaults and pay all other bills by direct debit each month in full and on time.

I moved to the UK from Ireland in April 2012, I had no credit history prior to this time but have worked on building it and really cant understand why its only 75 with Equifax... I have had 9 credit searches on equifax in the past 6 months as I have been opening some credit accounts to try build score up faster...

I really cant understand why there is such a difference between Equifax and Exerpian considering they both have the same information.

Perhaps someone can help?

Moved to a new thread ---> https://forums.moneysavingexpert.com/discussion/4775301

And other posts on multiple threads cleaned up.

MSZ

I've got myself into a bit of a pickle and would appreciate some advice as a newbie.

In June of this year, I applied and was successful in accessing a 0% deal on MBNA, tarting on from a 21-month 0% deal with Barclaycard. I had arranged to make a standing order each month, but for the first two months, it was bounced back from MBNA to my bank. I contacted MBNA to enquire why, but they didn't explain why they had returned it - only re-stating the process for setting up a standing order.

To make things worse, I thought that I had paid off the remaining balance on a Halifax card but it turns out I missed two payments on a balance of £9.40. This has all been cleared now, but to cap it all, I missed a payment on the MBNA card and they've revoked the 0% deal.

I know that Direct Debits are the way to go, and I've got that sorted now, but I was wondering if anyone had any advice about next steps and what effect this might have on my credit rating or chances of accessing another 0% or low rate deal?

Tixy

MSZ wrote: »

I know that Direct Debits are the way to go, and I've got that sorted now, but I was wondering if anyone had any advice about next steps and what effect this might have on my credit rating or chances of accessing another 0% or low rate deal?

Hi. In the short term its likely to have a significant impact on your ability to get credit and certainly on 0% deals.
As time passes the impact will lessen and if everything else is kept up to date then your file will start to look better overall.

Have you tried asking MBNA if they will consider reinstating the 0% deal as a goodwill gesture, and because you can demonstrate that you did try to pay by SO but that there was some issue with that (and that you have now set up a DD).

MSZ

Hi Tixy - many thanks indeed for your reply. MBNA have reduced the rate from 18.9% to 1.9% - I'm happy with that under the circumstances.

HGANA

Hello everyoneI just checked my credit score and it's quite bad due to a default on my account, unfortunately I recieved this default after a nasty break up and after moving out of the house we lived in, I did not recieve any default notices. I understand this is totally my fault however the state I was in I totally forgot about the item in question (three contract for mobile broadband) the account is now settled after debt collectors found my new address and i paid in full instantly and the account is now showing ''satisfied'' but in default on my account for another FOUR YEARS. I wanted to buy a house but i don't really want to wait that long (Even though I may have too). Is there anything I can do to remove this or explain this to credit lenders or even put it on my report if removal is not possible.

fermi

You can see if the CRA will add a notice of correction to the entry. 200 words max explaining the circumstances of the default.

http://www.experian.co.uk/consumer/faq/AR5.html